On The Fly: Morning Wrap-Up for March 31Globex S&P futures are recently down 8.20 from previous day’s SPX cash close. Nikkei 225 down 1.05%, DAX down 0.37%. WTI Crude oil is recently at 47.74, natural gas down 0.61%, gold at $1179 an ounce, copper down 1.46%.

FX Update: EUR-USD fell to nine-day lows FX Update: EUR-USD fell to nine-day lows under 1.0780, bringing the Mar-22 low at 1.0767 into scope. The move broke below the 20-day moving average, which is presently sitting at 1.0796 and now reverts as resistance, ahead of 1.0845. The fresh decline reflects broader dollar gains that were sparked by Fed's Fischer, who said U.S. GDP data may be understating the economy's health. USD-JPY rallied to a new high for a second day, making an 11-day peak of 120.36. The move came to a pause just shy of the 20-day moving average at 120.40. Cable has sunk back below 1.48s and looks set to test yesterday's 11-day low at 1.4752. The U.S. dollar also made advances on the dollar bloc currencies, with USD-CAD trading above 1.2700 and AUD-USD having dived to a 12-day low at 0.7619 amid expectations of a further RBA rate cut, either at the April or May policy reviews.

Treasury Closing Summary: Treasury Closing Summary: Wall Street was the big winner on Monday with hefty gains, following through on bullish enthusiasm from Asia and Europe, supported by more M&A news and hopes for more stimulus from China. The Dow climbed 300 points to retouch the 18,000 mark at one stage. Treasuries, on the other hand, posted small gains in quiet trading with curve steepening trades predominating, though the long-end was tamped down too heading into quarter-end duration extensions. The savings rate jumped after a boost in income and drop in spending, while the Dallas Fed index plunged thanks to the proximity of the oil industry.

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Canada January GDP Preview Canada January GDP Preview: Analysts expect GDP, due Tuesday, to fall 0.2% m/m in January (median same) after the 0.3% rise in December. An as expected 0.2% drop would leave GDP on track for a 0.6% growth pace in Q1, which would undercut the BoC's 1.5% estimate. But Governor Poloz reiterated his view that the impact of the oil price shock is front-loaded, while also being upbeat on the manufacturing sector turn-around (thanks to lower CAD and ongoing U.S. recovery). Hence, an as-expected or more pronounced than projected pull-back in January GDP would not alter our outlook for an extended period of steady policy.

Averages remain near session highs in afternoon tradingStocks remain sharply higher and near their highs of the day in afternoon trading. The market jumped at the open following news of China's central bank being more open to take easing actions if needed as well as a flurry of healthcare related M&A news. The averages have moved in a fairly narrow range since finding a level early in the day, but with an upward drift. The move today is broad based but the Dow, which is up more than 1.5%, is the clear leader.

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Treasury Option Action: some bearish positioning Treasury Option Action: some bearish positioning was reported, buying 15k in June 125 puts on 10-year futures. Earlier there was some bullish May 164/169 call spread buying on bond futures, as well as a 4k purchase of May 120/120.75 call 1x2 spreads on 5-year futures. June 10s are flat near 128-22 compared to a 128-245 to 128-14 session range.